) shares fell Tuesday after the cable operator posted 36% higher first-quarter consolidated adjusted EBITDA on an 8% revenue rise. The company reported a first-quarter loss from continuing operations of 43 cents per share. It cut its telecommunication services adjusted EBITDA growth estimate to 16% to 18% due to higher programming costs.
) shares rose on news that Corning (GLW
) will sell a large portion of its photonic technology business to Avanex. Separately, Avanex will buy Alcatel Optronics. Raymond James upgraded Avanex.
Thomas Weisel reiterated an outperform rating on Scientific-Atlanta (SFA
). On Monday the maker of broadband products, including set-top boxes, introduced a portfolio of radio frequency-based telecommunications solutions.
) posted a $1.08 third-quarter loss per share, vs. 26 cents earnings per share, on 12% lower sales. The appliance maker, which markets George Foreman and Juiceman products, among others, says it's difficult to provide fourth-quarter guidance at this point. S&P downgraded.
Weight Watchers (WTW
) shares fell after the provider of diet programs posted 39 cents, vs. 33 cents, first-quarter earnings per share from operations on an 18% revenue rise. Its profit of 37 cents a share, which includes a 2-cent negative impact from the mark-to-market of the company's euro-dominated debt, was a penny below the consensus estimate. In a conference call, Weight Watchers said it expects flat growth in organic attendance (which excludes acquisitions) for the second quarter.
J.P. Morgan downgraded supply-chain management services firm USF Corp. (USFC
) to neutral from overweight.
CIBC World sees Skyworks Solutions (SWKS
) gaining market share in all product lines in the second half of the year, and reiterates sector outperform.
Interdigital Communications (IDCC
) posted 45 cents first-quarter earnings per share, vs. breakeven, on a 78% revenue rise, recognition of royalties, a litigation settlement, lower operating costs, and a lower tax rate.
Packaged Ice (ICY
) agreed to be acquired by a new entity formed by Trimaran Capital Partners and Bear Stearns Merchant Banking for $3.62 per share.
Dutch food-service giant Ahold (AHO
) accepted the resignation of Jim Miller, president and CEO of U.S. Foodservice.
Enzon Pharmaceuticals (ENZN
) shares fell after the drug maker says it will comment on its third-quarter conference call after the market close on Schering-Plough's (SGP
) PEG-INTRON's sales, on which Enzon receives royalties. Schering-Plough reported worldwide sales of the INTRON franchise were down 7% in the first quarter.
Seperately, Schering-Plough posted 12 cents, vs. 41 cents, first-quarter earnings per share on a 19% sale drop, citing a loss of Claritin sales after the allergy drug became available without a prescription at a big discount to its former price. Schering withdrew the 75 cents to 85 cents 2003 earnings per share guidance.
) discontinued its current Phase III tariquidar trials in non-small cell lung cancer. The decision was made following a recommendation by an Independent Data and Safety Monitoring Committee.
), the world's largest retailer, posted 42 cents, vs. 37 cents a year ago, first-quarter earnings per share on a 9.7% sales rise -- meeting analysts' average estimates. Profit was reduced by 2 cents a share, due to a new rule on how Wal-Mart accounts for money received from suppliers for promoting products.
J.C. Penney (JCP
) reported first-quarter earnings per share of 20 cents, vs. 29 cents a year ago, on 3% lower total sales. The department store chain maintained its second-quarter guidance.
Specialty retailer Pacific Sunwear (PSUN
) posted 16 cents, vs. 7 cents, first-quarter earnings per share on 13% higher same store sales, and 23% higher total sales. Prudential and CIBC World raised their estimates. S&P maintains accumulate.
Martha Stewart Living (MSO
) is in talks with the U.S. Justice Dept. about settling its insider trading probe, according to the Financial Times.
Medical Staffing (MRN
) posted 17 cents, vs. 13 cents, first-quarter earnings per share on a 40% revenue rise. It withdrew the prior annual guidance. CS First Boston downgraded to underperform from outperform.
Lehman Brothers upgraded West Corp. (WSTC
) to overweight from equal-weight.
Bear Stearns upgraded AmeriCredit (ACF
) to peer perform from underperform.
First Albany downgraded Computer Network Technology (CMNT
) to neutral from buy.
Media giant News Corp. (NWS
) posted 23 cents, vs. 18 cents, third-quarter EPADS on 14% higher revenues.
Hanover Compressor (HC
) posted 2 cents, vs. 6 cents, first-quarter earnings per share from continuing operations (excluding a charge for securities litigation) despite a 7.1% revenue rise.
) will acquire Vivace Networks, a developer of flexible, higher performance multiservice IP edge switches, for $135 million in cash and employee stock options.